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15-302-SAN Thursday, February 26, 2015

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  • (415) 625-2270

Consumer Price Index, Phoenix – Second Half 2014

Area prices were up 0.5 percent over the past six months, up 1.8 percent from a year ago

Prices in the Phoenix Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 0.5 percent in the second half of 2014, the U.S. Bureau of Labor Statistics reported today. (See table A.) 

Regional Commissioner Richard J. Holden noted that the January increase was influenced by higher prices for shelter, electricity, and food. (Data in this report are not seasonally adjusted. Accordingly, six-month-to-six-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U rose 1.8 percent.  (See chart 1 and table A.) Energy prices declined 1.7 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy advanced 2.0 percent over the year. (See table 1.)

 Chart 1. Over-the-year percent change in CPI-U, Phoenix, First half of 2011 – Second half 2014

Food

Food prices increased 2.5 percent in the second half of 2014. (See table 1.) Prices for food at home advanced 3.6 percent, and prices for food away from home rose 1.1 percent for the same period.

Over the year, food prices increased 3.9 percent. Prices for food at home rose 5.1 percent since a year ago, and prices for food away from home rose 1.8 percent.

Energy

The energy index decreased 0.9 percent since the first half of 2014. The decrease was mainly due to lower prices for gasoline (-8.7 percent). Prices for natural gas service increased 6.9 percent, and prices for electricity increased 9.2 percent for the same period.

Energy prices declined 1.7 percent over the year, largely due to lower prices for gasoline (-5.9 percent). Prices paid for electricity rose 0.8 percent, and prices for natural gas service jumped 14.9 percent during the past year.

All items less food and energy

The index for all items less food and energy advanced 0.6 percent in the latest six-month period. Higher prices for shelter (1.6 percent) and medical care (1.1 percent) were partially offset by lower prices for household furnishings and operations (-2.0 percent), apparel (-1.6 percent), and recreation (-0.8 percent).

Over the year, the index for all items less food and energy advanced 2.0 percent. Components contributing to the increase included medical care (4.0 percent) and shelter (3.1 percent). Partly offsetting the increases were price declines in household furnishings and operations (-3.0 percent).

Table A. Phoenix CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2009 2010 2011 2012 2013 2014
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

-1.9 -1.3 0.3 0.7 2.1 2.2 1.6 2.8 1.1 1.2 1.2 1.5

Second Half

0.4 -1.5 0.1 0.4 1.2 3.3 0.1 1.7 0.2 1.3 0.5 1.8

The first half of 2015 Consumer Price Index for the Phoenix-Mesa is scheduled to be released on August 19, 2015.


Technical Note

The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 28 percent of the total population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.

The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 87 urban areas across the country from about 4,000 housing units and approximately 26,000 retail establishments--department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index.

The index measures price changes from a designated reference date (1982-84) that equals 100.0. An increase of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the price of a base period "market basket" of goods and services in the CPI has risen from $10 in 1982-84 to $11.65. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the BLS Handbook of Methods, Chapter 17, The Consumer Price Index, available on the Internet at www.bls.gov/opub/hom/homch17_a.htm.

In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

The Phoenix-Mesa metropolitan area covered in this release consists of Maricopa and Pinal Counties in the State of Arizona.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes for semiannual averages and percent changes for selected periods

Phoenix-Mesa, AZ (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2014 from-
2nd half
2013
1st half
2014
2nd half
2014
2nd half
2013
1st half
2014

Expenditure category

 
 

All items

125.922 127.490 128.157 1.8 0.5

All items (1967=100)

- - - - -

Food and beverages

134.840 136.255 139.260 3.3 2.2

Food

135.182 136.950 140.422 3.9 2.5

Food at home

138.713 140.739 145.856 5.1 3.6

Food away from home

131.410 132.346 133.835 1.8 1.1

Alcoholic beverages

130.927 128.849 126.996 -3.0 -1.4

Housing

121.378 122.261 124.081 2.2 1.5

Shelter

118.713 120.396 122.357 3.1 1.6

Rent of primary residence

121.402 123.834 125.782 3.6 1.6

Owners' equiv. rent of residences (1)

118.402 119.693 121.741 2.8 1.7

Owners' equiv. rent of primary residence (1)

118.402 119.693 121.741 2.8 1.7

Fuels and utilities

162.497 160.186 166.408 2.4 3.9

Household energy

174.125 163.311 177.745 2.1 8.8

Energy services

173.823 162.935 177.462 2.1 8.9

Electricity

186.830 172.419 188.252 0.8 9.2

Utility (piped) gas service

106.371 114.314 122.254 14.9 6.9

Household furnishings and operations

105.944 104.844 102.751 -3.0 -2.0

Apparel

133.511 137.272 135.143 1.2 -1.6

Transportation

123.777 125.669 122.453 -1.1 -2.6

Private transportation

124.698 127.117 123.881 -0.7 -2.5

Motor fuel

275.867 284.357 259.792 -5.8 -8.6

Gasoline (all types)

275.760 284.210 259.552 -5.9 -8.7

Gasoline, unleaded regular (2)

280.920 289.461 263.679 -6.1 -8.9

Gasoline, unleaded midgrade (2) (3)

271.404 280.662 258.852 -4.6 -7.8

Gasoline, unleaded premium (2)

262.384 270.242 248.955 -5.1 -7.9

Medical care

155.778 160.229 162.016 4.0 1.1

Recreation (4)

109.458 111.544 110.699 1.1 -0.8

Education and communication (4)

121.712 122.594 122.316 0.5 -0.2

Other goods and services

137.974 138.494 138.983 0.7 0.4
 

Commodity and service group

 
 

All Items

125.922 127.490 128.157 1.8 0.5

Commodities

122.451 123.457 122.303 -0.1 -0.9

Commodities less food & beverages

115.850 116.666 113.486 -2.0 -2.7

Nondurables less food & beverages

150.668 153.786 148.461 -1.5 -3.5

Durables

86.037 84.988 83.572 -2.9 -1.7

Services

128.562 130.486 132.311 2.9 1.4
 

Special aggregate indexes

 
 

All items less medical care

124.170 125.573 126.176 1.6 0.5

All items less shelter

129.660 131.206 131.133 1.1 -0.1

Commodities less food

116.433 117.115 113.991 -2.1 -2.7

Nondurables

142.637 144.830 143.845 0.8 -0.7

Nondurables less food

149.049 151.670 146.650 -1.6 -3.3

Services less rent of shelter (1)

140.896 143.042 144.728 2.7 1.2

Services less medical care services

125.628 127.240 129.008 2.7 1.4

Energy

216.671 214.846 212.882 -1.7 -0.9

All items less energy

120.625 122.310 123.386 2.3 0.9

All items less food and energy

118.278 119.955 120.693 2.0 0.6

Footnotes
(1) Index is on a December 1982=100 base.
(2) Special index based on a substantially smaller sample.
(3) Indexes on a December 1993=100 base.
(4) Indexes on a December 1997=100 base.
 

- Data not available.
 

Last Modified Date: Thursday, February 26, 2015

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News Release Information

15-302-SAN Thursday, February 26, 2015

Contacts

Technical information:
Media contact:
  • (415) 625-2270

Consumer Price Index, Phoenix – Second Half 2014

Area prices were up 0.5 percent over the past six months, up 1.8 percent from a year ago

Prices in the Phoenix Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 0.5 percent in the second half of 2014, the U.S. Bureau of Labor Statistics reported today. (See table A.) 

Regional Commissioner Richard J. Holden noted that the January increase was influenced by higher prices for shelter, electricity, and food. (Data in this report are not seasonally adjusted. Accordingly, six-month-to-six-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U rose 1.8 percent.  (See chart 1 and table A.) Energy prices declined 1.7 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy advanced 2.0 percent over the year. (See table 1.)

 Chart 1. Over-the-year percent change in CPI-U, Phoenix, First half of 2011 – Second half 2014

Food

Food prices increased 2.5 percent in the second half of 2014. (See table 1.) Prices for food at home advanced 3.6 percent, and prices for food away from home rose 1.1 percent for the same period.

Over the year, food prices increased 3.9 percent. Prices for food at home rose 5.1 percent since a year ago, and prices for food away from home rose 1.8 percent.

Energy

The energy index decreased 0.9 percent since the first half of 2014. The decrease was mainly due to lower prices for gasoline (-8.7 percent). Prices for natural gas service increased 6.9 percent, and prices for electricity increased 9.2 percent for the same period.

Energy prices declined 1.7 percent over the year, largely due to lower prices for gasoline (-5.9 percent). Prices paid for electricity rose 0.8 percent, and prices for natural gas service jumped 14.9 percent during the past year.

All items less food and energy

The index for all items less food and energy advanced 0.6 percent in the latest six-month period. Higher prices for shelter (1.6 percent) and medical care (1.1 percent) were partially offset by lower prices for household furnishings and operations (-2.0 percent), apparel (-1.6 percent), and recreation (-0.8 percent).

Over the year, the index for all items less food and energy advanced 2.0 percent. Components contributing to the increase included medical care (4.0 percent) and shelter (3.1 percent). Partly offsetting the increases were price declines in household furnishings and operations (-3.0 percent).

Table A. Phoenix CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2009 2010 2011 2012 2013 2014
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

-1.9 -1.3 0.3 0.7 2.1 2.2 1.6 2.8 1.1 1.2 1.2 1.5

Second Half

0.4 -1.5 0.1 0.4 1.2 3.3 0.1 1.7 0.2 1.3 0.5 1.8

The first half of 2015 Consumer Price Index for the Phoenix-Mesa is scheduled to be released on August 19, 2015.


Technical Note

The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 28 percent of the total population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.

The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 87 urban areas across the country from about 4,000 housing units and approximately 26,000 retail establishments--department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index.

The index measures price changes from a designated reference date (1982-84) that equals 100.0. An increase of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the price of a base period "market basket" of goods and services in the CPI has risen from $10 in 1982-84 to $11.65. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the BLS Handbook of Methods, Chapter 17, The Consumer Price Index, available on the Internet at www.bls.gov/opub/hom/homch17_a.htm.

In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

The Phoenix-Mesa metropolitan area covered in this release consists of Maricopa and Pinal Counties in the State of Arizona.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes for semiannual averages and percent changes for selected periods

Phoenix-Mesa, AZ (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2014 from-
2nd half
2013
1st half
2014
2nd half
2014
2nd half
2013
1st half
2014

Expenditure category

 
 

All items

125.922 127.490 128.157 1.8 0.5

All items (1967=100)

- - - - -

Food and beverages

134.840 136.255 139.260 3.3 2.2

Food

135.182 136.950 140.422 3.9 2.5

Food at home

138.713 140.739 145.856 5.1 3.6

Food away from home

131.410 132.346 133.835 1.8 1.1

Alcoholic beverages

130.927 128.849 126.996 -3.0 -1.4

Housing

121.378 122.261 124.081 2.2 1.5

Shelter

118.713 120.396 122.357 3.1 1.6

Rent of primary residence

121.402 123.834 125.782 3.6 1.6

Owners' equiv. rent of residences (1)

118.402 119.693 121.741 2.8 1.7

Owners' equiv. rent of primary residence (1)

118.402 119.693 121.741 2.8 1.7

Fuels and utilities

162.497 160.186 166.408 2.4 3.9

Household energy

174.125 163.311 177.745 2.1 8.8

Energy services

173.823 162.935 177.462 2.1 8.9

Electricity

186.830 172.419 188.252 0.8 9.2

Utility (piped) gas service

106.371 114.314 122.254 14.9 6.9

Household furnishings and operations

105.944 104.844 102.751 -3.0 -2.0

Apparel

133.511 137.272 135.143 1.2 -1.6

Transportation

123.777 125.669 122.453 -1.1 -2.6

Private transportation

124.698 127.117 123.881 -0.7 -2.5

Motor fuel

275.867 284.357 259.792 -5.8 -8.6

Gasoline (all types)

275.760 284.210 259.552 -5.9 -8.7

Gasoline, unleaded regular (2)

280.920 289.461 263.679 -6.1 -8.9

Gasoline, unleaded midgrade (2) (3)

271.404 280.662 258.852 -4.6 -7.8

Gasoline, unleaded premium (2)

262.384 270.242 248.955 -5.1 -7.9

Medical care

155.778 160.229 162.016 4.0 1.1

Recreation (4)

109.458 111.544 110.699 1.1 -0.8

Education and communication (4)

121.712 122.594 122.316 0.5 -0.2

Other goods and services

137.974 138.494 138.983 0.7 0.4
 

Commodity and service group

 
 

All Items

125.922 127.490 128.157 1.8 0.5

Commodities

122.451 123.457 122.303 -0.1 -0.9

Commodities less food & beverages

115.850 116.666 113.486 -2.0 -2.7

Nondurables less food & beverages

150.668 153.786 148.461 -1.5 -3.5

Durables

86.037 84.988 83.572 -2.9 -1.7

Services

128.562 130.486 132.311 2.9 1.4
 

Special aggregate indexes

 
 

All items less medical care

124.170 125.573 126.176 1.6 0.5

All items less shelter

129.660 131.206 131.133 1.1 -0.1

Commodities less food

116.433 117.115 113.991 -2.1 -2.7

Nondurables

142.637 144.830 143.845 0.8 -0.7

Nondurables less food

149.049 151.670 146.650 -1.6 -3.3

Services less rent of shelter (1)

140.896 143.042 144.728 2.7 1.2

Services less medical care services

125.628 127.240 129.008 2.7 1.4

Energy

216.671 214.846 212.882 -1.7 -0.9

All items less energy

120.625 122.310 123.386 2.3 0.9

All items less food and energy

118.278 119.955 120.693 2.0 0.6

Footnotes
(1) Index is on a December 1982=100 base.
(2) Special index based on a substantially smaller sample.
(3) Indexes on a December 1993=100 base.
(4) Indexes on a December 1997=100 base.
 

- Data not available.
 

Last Modified Date: Thursday, February 26, 2015